What is the automobile luxury tax?

April 15, 2005

Subject:  Luxury Tax
Date:  Thu, 24 Mar 2005
From:  Dorothy

Dear Sir:

I want to buy a BMW Z4 for about $40,000. What is the luxury tax?

Sincerely,
Dorothy

Answer

Date:  Fri, 01 Apr 2005

Hello Dorothy,

The federal luxury tax for automobiles has expired for sales after 2002, so there is no luxury tax unless a local one applies. Ask your BMW dealer.

Good luck!
Mike Gray

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